After Bitcoin rose for three consecutive days to $108,353, it was thought that it would break through $110,000 soon, but Powell said: We will not own Bitcoin and do not want to change the law. Bitcoin market then plunged and then entered a deep correction. It has now fallen to the lowest point in recent days, around $95,000. According to the current trend, Bitcoin will continue to go down and may further drop to $880 million.
The main reason for the sharp drop is the Federal Reserve. The hawkish tone released by the Federal Reserve the day before yesterday exceeded expectations, causing a huge shock in the financial market. Powell said that subsequent interest rate cuts should be cautious, which led to a sharp drop in US stocks. The next week will be a stage for digesting this news.
So how much will Bitcoin drop to?
Currently, from a technical perspective, the trend of Bitcoin is still downward. The bottom is not very deep, and there is still an expectation that the U.S. will include BTC in its strategic reserves. It has nearly fallen enough, with an estimated maximum drop of 88,000.
The next trend for Bitcoin is expected to oscillate between 90,000 and 95,000 for a while, and only after stabilizing can it gather strength to break upward.
Additionally, regarding Dogecoin, Musk has been controlled by the military, leading to a major sell-off in the Dogecoin sector. It has now fallen below $0.3, having dipped to around $0.292. Musk's news could cause Dogecoin to drop by over 50%. Almost all coins are following the market trend of Bitcoin.
So in the upcoming week, the market needs to digest this news and will continue to trend downwards. However, I believe these issues are temporary. What you need to do now is to hold cash if possible, restrain yourself, refrain from trading, and avoid trying to buy the dip. Only when the market stabilizes will it enter the second phase of the bull market, meaning that only during a pullback will there be another opportunity for everyone.
Can we buy the dip in altcoins now?
The first phase of the bull market has ended. The next market movements and a large influx of capital will flow into the altcoin market. It will be the right opportunity to buy the dip after the market stabilizes. Currently, most altcoins lack support from large capital, and once they drop, there are no support levels. Market sentiment must also be considered. From the current situation, if Bitcoin continues to pull back, altcoins may fall even harder. Therefore, it is crucial to control your positions well and keep some funds available for days without liquidity.
Can we invest in new coins?
Recently, new coins on Binance have also lost their profit-making effect, with prices generally falling after listing, and the rate of decline is getting faster. For example, many friends have likely been trapped in the recent ME. There is little analytical information on new coins, and there are not many references; high gambling factors are involved. In times of insufficient market liquidity and low sentiment, it is advisable not to touch new coin projects on Binance. We can mainly focus on those projects with long-term narratives.
What potential coins are worth investing in right now?
In fact, what the market lacks the least is opportunity; there will continue to be potential explosive coins. However, it is not suitable to recommend any at the moment, and I do not advise everyone to go against the market trend. What you need to do now is quietly wait for the right opportunity, maintain a good capital reserve, and when the market stabilizes and rebounds, you can buy low and make a big move!
Investment always comes with risks. If you want to reduce risks, follow me for discussions and exchanges! I'm Brother Lei, known for being steady! I have focused on the cryptocurrency circle for seven years. I conduct in-depth research on primary projects and secondary markets. Learn more about high-quality primary project information and secondary trading recommendations. Just to safeguard your investments in the cryptocurrency world!